Question: Saved Help Save& Exit Submit Check my work Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamonid can be sold for $140.
Saved Help Save& Exit Submit Check my work Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamonid can be sold for $140. The materials cost for a standard diamond is $40. The fixed costs incurred each year for factory upkeep and administrative expenses are $216,000. The machinery costs $2.5 million and is depreciated straight-line over 10 years to a salvage value of zero. a. What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.) Break-even sales diamonds per year Id per year assuming a tax rate of 35%, a 10-year project life, and a discount rate of b. what is the NPV break even level of diamonds so 12%? (Do not round intermediate calculations. Round your answer to the nearest whole num ber Break-even sales diamonds per year PreY 3 of S Next
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